Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas As Engrossed: H2/15/23 S3/1/23 S3/6/23 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1349 3
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By: Representatives Ray, V. Flowers 5
By: Senator J. Dotson 6
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For An Act To Be Entitled 8
AN ACT CONCERNING PA ID ESPORTS TOURNAMEN TS; AND FOR 9
OTHER PURPOSES. 10
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Subtitle 13
CONCERNING PAID ESPORTS TOURNAMENTS. 14
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. Arkansas Code Title 23, is amended to add an additional 19
chapter to read as follows: 20
CHAPTER 118 21
PAID ESPORTS TOURNAMENTS 22
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23-118-101. Legislative findings. 24
(a) The General Assembly finds that a paid esports tournament 25
conducted in compliance with this chapter does not constitute gambling for 26
any purpose. 27
(b) Paid and nonpaid esports tournaments conducted in compliance with 28
this chapter are exempt from § 5-66-101 et seq. 29
(c) Income earned by esports tournament competitors or esports 30
tournament organizers as a result of a paid esports tournament is taxable 31
under the Income Tax Act of 1929, § 26-51-101 et seq. 32
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23-118-102. Definitions. 34
As used in this chapter: 35
(1)(A) "Esports" means any form of multiplayer competition in 36 As Engrossed: H2/15/23 S3/1/23 S3/6/23 HB1349
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which competitors compete against each other using video gaming consoles, 1
computers, or other electronic devices. 2
(B) "Esports" includes the ability to compete or perform 3
in front of an audience, and through an online platform, broadcast on 4
television, or at an in-person event. 5
(C) "Esports" does not include : 6
(i) A house-banked game in which participants 7
compete or play against the house, including without limitation an operator, 8
rather than other participants; 9
(ii) A casino-style gambling game or other gambling 10
game customarily offered at a casino; 11
(iii) A game based on or otherwise involving horse 12
racing under the Arkansas Horse Racing Law, § 23 -110-101 et seq., or 13
greyhound racing under the Arkansas Greyhound Racing Law, § 23 -111-101 et 14
seq.; or 15
(iv) Any electronic pull -tab game or similar 16
traditional gambling game; 17
(2) "Esports tournament organizer" means a person that: 18
(A) Is engaged in the business of professionally 19
conducting paid esports tournaments for cash prizes for esports tournament 20
competitors; and 21
(B) Requires cash or cash equivalent as an entry fee to be 22
paid by a member of the general public who competes in a paid esports 23
tournament; 24
(3) "Esports tournament competitor" means an individual or group 25
of individuals who function as a team that competes in a paid or nonpaid 26
esports tournament offered by an esports tournament organizer; 27
(4) "Nonpaid esports tournament” means any: 28
(A) Esports event organized by an educ ational institution, 29
charity, nonprofit, or other institution that awards nonmonetary prizes to 30
esports tournament competitors; or 31
(B) Event that does not require an entry or venue fee to 32
competes in esports; 33
(5)(A) "Paid esports tournament" means, and is limited to, any 34
esports event facilitated by an esports tournament organizer for a cash prize 35
or other monetary compensation if an esports tournament competitor is 36 As Engrossed: H2/15/23 S3/1/23 S3/6/23 HB1349
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required to pay an entry or venue fee to compete. 1
(B) "Paid esports tournament" i ncludes any esports 2
tournament or contest that meets the following conditions: 3
(i) The values of all prizes and awards offered to 4
winning esports tournament competitors in public contests, and the method 5
through which prizing is determined, are established and made known to the 6
esports tournament competitors in advance of the tournament or contest; 7
(ii) All winning outcomes reflect the relative 8
knowledge and skill o f the esports tournament competitors and are determined 9
by the results of the performance of esports tournament competitors; 10
(iii) A winning outcome is determined by the results 11
of fully completed contests or events and not merely a portion of a conte st 12
or event, except that an esports tournament competitor may be credited for 13
results in a suspended or shortened contest or event that has been suspended 14
or shortened by a decision of the esports tournament organizer on account of 15
weather or other natural or unforeseen events; and 16
(iv)(a) Each paid esports tournament competitor is 17
required to pay an entry fee to compete. 18
(b) Each nonpaid esports tournament competitor 19
is exempted from the requirement to pay an entry fee to compete. 20
(c) Payment under subdivision (5)(B)(iv)(a) of 21
this section shall be with cash or a cash equivalent and is not gambling for 22
the purposes of § 5-66-101 et seq.; and 23
(6) "Person" means any association, corporation, limited 24
liability company, fiduciary, individual , joint stock company, joint venture, 25
partnership, sole proprietorship, or other private legal entity. 26
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23-118-103. Paid esports tournaments authorized. 28
(a) An esports tournament organizer is authorized to conduct a paid 29
esports tournament through one (1) or more websites, local area networks, 30
video gaming platforms, or other similar gaming platforms maintained and 31
operated by the esports tournament organizer under this chapter. 32
(b) Wagering on the outcome of an esports tournament is not authorized 33
under this chapter. 34
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/s/Ray 36